A Novel Approach to Comprehensive Economic Evaluations: Case Study of an Inherently Sustainable Technology Using Renewable Energy Sources

Abstract

Traditionally, economic evaluations are based on cost per unit output, which is only suitable for determining short-term and tangible outlooks. A comprehensive economic evaluation of any system should include long-term considerations that are only captured through intangible elements. An evaluation incorporating both the tangible and intangible elements may be considered truly comprehensive. An engineering decision support system that follows such an evaluation process will focus on long-term, even as it tests and selects ingenious solutions that are suitable for tangible and short-term applications. By focusing on long-term, the sustainability criterion is fulfilled, thereby eliminating long-term negative consequences of a short-term remedy. This article proposes a guideline of economic evaluation that will truly identify the best process among different processes for both short-term and long-term applications. As an example, this article evaluates the merit of a sustainable technology that is applied within the framework of renewable energy sources.

Keywords:

• economic evaluation
• economics of intangibles
• global economics
• quality of energy
• zero-waste